Global investment firm KKR backs Allfleet and PMI Electro with up to $310 million for e-bus scale-up in India

India’s electric bus market is set to receive up to $310 million from KKR-managed funds through a new strategic partnership with Allfleet and PMI Electro.

According to a press release issued by KKR, KKR-managed funds have signed definitive agreements to commit up to $310 million to form a strategic partnership with Allfleet India Private Limited and PMI Electro Mobility Solutions Private Limited, with the transaction structured to support the expansion of Allfleet’s electric bus platform and PMI Electro’s manufacturing capabilities. As part of the transaction, KKR will acquire a majority stake in Allfleet and a minority stake in PMI Electro.

The deal marks KKR’s first Global Climate Transition investment in India and the eighth investment globally under that strategy. The press release by KKR states that the transaction remains subject to customary regulatory approvals and is expected to close in mid-2026.

PMI Electro Mobility Solutions recorded 1,041 electric bus registrations in India in 2025, up from 534 units in 2024. The company’s market share rose from 14.3% to 23.4% over the same period, positioning PMI Electro among the leading players in a market that reached 4,441 total registrations in 2025, compared to 3,730 units in 2024. PMI Electro ranked alongside Olectra Greentech and Switch Mobility among the top three manufacturers by volume

KKR targets Allfleet fleet rollout and PMI Electro manufacturing

Established in 2022, Allfleet operates through subsidiaries as PMI Electro’s electric bus platform, with activities focused on the development, ownership and operation of large-scale electric public transport fleets. The company is on course to deploy more than 5,000 electric buses under long-term concession and service agreements with multiple state transport authorities in Indian cities, according to the KKR press release.

The transaction is framed around an integrated electric mobility platform linking vehicle manufacturing, fleet ownership, operations and lifecycle support. PMI Electro is active as a manufacturer of electric commercial vehicles in India, and the partnership with Allfleet has been positioned around the deployment of electric public transport fleets for urban mobility services.

KKR said the investment is intended to support Allfleet’s growth and its work with public transport authorities in expanding electric bus fleets across key cities. The same transaction is also designed to advance PMI Electro’s manufacturing capacity as the platform expands.

KKR said this is its latest investment in India and the first one in the country through its Global Climate Transition strategy. Since 2010, KKR has committed more than $44 billion to climate and environmental sustainability investments, according to the source press release.

The firm also listed other climate-related investments under the strategy, including Zenobē in the United Kingdom, CleanPeak in Australia, HMC Capital’s Energy Transition Platform in Australia, EGC in Germany, Dawsongroup, Avantus in the United States and IGNIS P2X.

“Transport electrification is a critical pillar of the energy transition, and India – with its scale, urbanization trends, and decarbonization ambitions – represents one of the most significant opportunities for the sector globally,” said Neil Arora, Partner and Head of KKR’s Climate Transition strategy for Asia Pacific.“The differentiated combination of Allfleet’s proven, scalable platform and PMI’s manufacturing and service expertise stands out as a full-service solution in this market. We look forward to supporting Allfleet’s next phase of growth by working together with PMI and leveraging KKR’s global operational expertise and experience investing across climate transition.”

Aanchal Jain, CEO, PMI Electro and Director, Allfleet, said:“This investment by KKR marks a defining milestone in our journey and is a powerful endorsement of the integrated electric mobility platform we have built at Allfleet. PMI Electro’s vision is to create a scalable, reliable, and future-ready ecosystem that can transform public transport in India. As our cities grow and mobility needs evolve, clean, efficient, and accessible public transport will play a central role in shaping a more sustainable future.”